Big Project ME April 2015

APRIL 2015

ALSO INSIDE GeorGe berbari construction mobility dispute prevention health and safety

in a tight spot

Ali & Sons and Doka team up to build the Juma Al Majid Tower in Business Bay

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CONTENTS

APRIL 2015 07 the big picture Al HAmrA breAks ground on $272mn fAlcon islAnd project Development in Al hamra Village will consist of 150 LeeD-certified properties

12 News ANALysis All eYes on Abu dHAbi big project Me investigates the impact of Abu Dhabi’s drive to increase its retail and tourism offerings

16 iN profiLe engineering tHe future gavin Davids interviews george berbari, ceo of Dc pro engineering

22 site Visit Working in tigHt spAces big project Me tours the Juma Al Majid tower in business bay, a 47-storey residential tower being built by Ali & sons contracting and Doka

28 speciAL focus – heALth AND sAfety sAfetY first Jerusha sequeira finds out how contractors and consultants are working together to change the gcc’s approach to health and safety in construction

37 it iN focus – MobiLity future in our HAnds gavin Davids talks to tech firms about their mobility solutions for construction professionals

42 speciAL focus – Disputes let tHe rigHt one in why choosing the right contractor helps a developer in the long run

48 sustAiNAbiLity coMMeNt A 10-point plAn for mAximising tHe benefits of sustAinAbilitY Neil Kirkpatrick, faithful+gould’s head of sustainability, outlines his vision for maximising sustainability

58 teNDers top tenders big project Me lists the region’s biggest construction tenders for April 2015

64 coNstructiVe criticisM5 sAudi

Big Project ME visits the Juma Al Majid Tower in Business Bay.

APRIL 2015

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PAGE 22

license to skill wael Allen explains how international consultancies positively impact the cities where they operate

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INTRODUCTION

MEconstructionnEws.COm

Health on the Mind

Group Chairman and Founder Dominic De SouSa Group Ceo naDeem HooD Group Coo Gina o’HaRa

puBLiShinG direCtor

This month, Big Project ME looks at how the UAE’s construction industry is working to change the way health and safety is approached in this country. With the international media having turned its spotlight on the region, the issues around health and safety have never been more pertinent.

That’s why I was surprised to find that while the safety aspect of the industry has made tremendous progress over the last few years, there are still serious gaps in the way we address health in construction.

When we talk about providing healthcare, it’s not just the physical well-being of an individual that we should be concerned about, it should also cover the psychological impact of being in a labour-intensive, high-stress environment.

In the article, we see that there is a growing realisation that the construction industry needs to do more about addressing occupational health hazards and long-term damage caused by working on a construction site. This deserves to be recognised and appreciated; however, it really isn’t.

Given that there have been numerous reported cases of workers suffering from mental health issues, international human rights organisations have pleaded for the region’s governments to provide support and backing for labourers who face these problems.

As admirable as this stance is, it’s only really effective if the construction industry itself takes a more active role in promoting awareness and education of mental health issues to the people who need it most, the workers who build these projects.

Having mental health professionals available to the workers, which would allow them to express their stresses and worries in a safe and controlled environment, could also be another viable option to prevent more serious problems down the line.

There are encouraging signs throughout the region, with a number of countries revising their laws to to ensure that workers receive adequate healthcare and safety. Now we need to ensure that their mental health receives the same attention.

RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471 editoriaL direCtor ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDiToRiaL editor GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 reporter JeRuSHa SeQueiRa jerusha.sequeira@cpimediagroup.com +971 4 375 5477 SuB editor aeLReD DoYLe aDVeRTiSinG CommerCiaL direCtor micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 maRKeTinG marKetinG manaGer LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DeSiGn art direCtor Simon coBon ciRcuLaTion & PRoDucTion diStriBution manaGer SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476 produCtion manaGer ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL WeB deveLoper moHammaD awaiS WeB deveLoper umaiR SHamim PuBLiSHeD BY

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Gavin Davids Editor

APRIL 2015

while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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READERS' COMMENTS

Site visit: Hyatt Regency Dubai Creek Heights

Governments and company bosses can do all they like to ensure better fire safety. But in the end it’s the on-theground employees that really matter – everyone from site managers to security guards in finished buildings. So there needs to be more safety training and awareness campaigns – as well as greater recognition of these workers.

1

Riot police called in over workers’ strike near Dubai Mall

Police were called in during a rare pay dispute by employees of the Arabian Construction Company working on Emaar’s Fountain Views development.

2

Dubai Torch fire: Façade materials called into question

Doubts raised over the quality of the material used in 79-storey tower following dramatic fire that left many

PHOTO GALLERIES

A look at Dubai’s latest five-star hotel as it prepared to open its doors to the public.

See photo galleries at: meconstructionnews.com/photos

residents temporarily homeless.

3

Dubai protest: Contractor “not obliged” to pay incentives

Arabian Construction Company

Ahmed Abbas, Comment to the

says “no one will be deported” after

story, ‘Dubai Torch fire: Were lessons

strike of estimated 200 workers.

4

from Tamweel incident heeded?’

Architect Chris Brown appointed Middle East design

READER POLL

director at Woods Bagot

What is the biggest challenge your company faces?

Brown is a familiar face in the industry, with 21 years of experience in the UK, Hong Kong, the US and the Middle East.

5

Dubai property group offers free flats to Torch fire victims

The First Group to provide 20 apartments as temporary accommodation for those left homeless after blaze on February 21.

VIDEO

Watch the Liebherr L550 wheel loader in action An open day was held in Dubai to demonstrate Liebherr’s earthmoving equipment to prospective customers.

See videos at: meconstructionnews.com/videos

6%

20%

14%

60%

Cost of raw materials

Poor contract margins

Competence of sub-contractors

Non-payment or slow payments

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MIDDLE EAST

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

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THE BIG PICTURE

green vAlue LEED properties are 30% more valuable and retain more value, which is why Falcon Island has 150 of them under development.

Al HAmrA breAks ground on $272m FAlcon IslAnd In rAk Development in Al HAmrA villAge will comprise 150 leeD-certifieD properties Ras al Khaimah’s al hamra Real Estate Development (ahRED) has broken ground on its $272.3 million Falcon island residential project, the developer announced.

The 150 properties being built on Falcon island will be lEED Platinumcertified as ‘green’ buildings, something al hamra says has helped drive sales.

“The prospects of owning a lEEDcertified property in a booming property market where average sale and rental rates across UaE have been increasing by around 30% and 25%, respectively, is one of the key reasons why the first phase of Falcon island has sold out,” said Benoy Kurien, general manager of ahRED. “lEED properties are 30% more valuable and retain more of that value.”

falcon facts n $272 million – value of falcon island project

n 2.2 million sqm – size of falcon island project

n $41 million – china harbour engineering company’s contract

a second off-plan lease for the development has also been released and is selling fast, Kurien added. in an interview last year with Big Project ME, Barry Ebrahimy, head of commercial at ahRED, said Falcon island would harness solar power to meet its electricity needs. “all the energy for homes will come from solar. Even the district cooling for that site will be a hybrid of solar and conventional energy.”

Earlier this month, it was revealed that the developer had awarded China harbour Engineering Company a $41 million contract for marine and infrastructure works on the 2.2 million sqm project.

The scope of the contract includes dredging a canal through the centre of

the island alongside building power, sewage and road networks. a central canal that will split the island in two is being developed as part of the marine and infrastructure works.

Work was scheduled to begin in march, and the project is expected to be complete in October 2016.

Under the contract, China harbour Engineering Company will be responsible for dredging the canal and landscaping private and public beaches, as well as building power, sewage and road networks.

The firm, which is a subsidiary of China Communications Construction Company, will also enhance existing beaches at al hamra Village as part of the awarded contract.

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Big project me interviews george berbari, chief executive officer of Dc pro engineering – Page 16 7

THE BIG PICTURE

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nAkHeel Issues tender For Al kHAIl Avenue mAll works BiDs inviteD for infrAstructure contrAct AHeAD of construction tenDer NaKhEEl, ThE DUBai-BasED real estate developer, has released a tender for enabling works for al Khail avenue, a 334,451sqm retail, dining and entertainment hub in Dubai’s Jumeirah Village Triangle.

The scope of the tender covers infrastructure services relocation, shoring works and excavation ahead of the construction of the shopping mall, which is scheduled to open in 2018. Nakheel has said that it will release the tender for construction of the project by the end of June. al Khail avenue will be located on the eastern edge of the Jumeirah Village Triangle master community. The mall will consist of 350 shops, including a supermarket, department stores and speciality outlets. a multi-screen cinema, entertainment zone and eateries will also be built as part of the project. There will also be a multi-storey car park.

The retail and entertainment project is one of 10 large-scale developments in Nakheel’s portfolio. The developer said in a statement that the project would provide an entertainment and leisure hub for the tens of thousands of people living in Jumeirah Village, Jumeirah Park and other nearby areas.

Other retail projects under Nakheel’s banner include malls and souqs being built on Palm Jumeirah, Deira islands, Jumeirah Village and Warsan Village. major extensions are also being built for Dragon mart and ibn Battuta mall. six neighbourhood retail centres are also being developed further at various communities across Dubai.

Earlier in march, Nakheel announced that it had delivered 90 new villas at its Jumeirah Village Circle project in Dubai. The first residents for the project are expected to move in this month, the developer said.

al khail figures n 334,451sqm – size of al Khail avenue

n 350 – number of shops and outlets in the mall

n 10 – number of large-scale developments in nakheel’s portfolio

n $1 billion – nakheel’s profit for 2014

The residential project consists of 90 four-bedroom villas covering 340.5sqm. it is part of a number of Nakheel-constructed projects developed in JVC, including 615 townhouses and villas which were delivered in 2013. a 92,903sqm shopping destination, Circle mall, is currently under construction and expected to be delivered in 2017. in January 2015, Nakheel announced its results for the financial year ending December 31, 2014. it posted a profit of $1 billion, a 43% increase from the $700 million posted a year earlier. The increase came despite a fall in revenue, which dropped by almost a quarter compared to 2013, to $1.9 billion.

Nakheel attributed the drop in revenue to the completion of fewer homes than during the previous year. in 2014, the developer handed over 1,117 units, compared to 3,150 in 2013.

lArge-scAle portFolIo Al Khail Avenue is one of 10 large-scale developments being built by Nakheel.

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Big project me visits the juma al majiD tower construction site in business bay – Page 22

APRIL 2015

THE BIG PICTURE

All pHAses go The completion of all phases of the Dubai Canal project is expected by mid-2016.

pHAse one oF dubAI cAnAl proJect At 40% completIon rtA cHAirmAn sAys work on pHAse two AnD tHree Are At 25% AnD 15% respectively PhasE ONE OF the Dubai Canal project is at 40% completion, the chairman of the Dubai Roads and Transport authority has announced.

The first part of the Dubai Canal project will see the construction of two bridges on sheikh Zayed Road, comprising eight lanes each. The Northern bridge is expected to be open by the end of 2015, while work on phase two and three are at 25% and 15% respectively, mattar al Tayer, chairman of the board and executive director of the RTa explained in a report by Gulf News.

“The contractor of phase one of the project started construction work on the Northern Bridge on shaikh Zayed Road in the direction of Dubai. some 50% of excavation work and casting of concrete piles have been completed, and the Northern Bridge is expected to open in the fourth quarter of this year. The construction of the bridge in the direction from Dubai to abu

canal figures n 50% – percentage of excavation work completed

n 3km – length of the canal

n 800m – span of bridge across sheikh Zayed road

n 8.5m – height of bridges crossing Dubai canal

Dhabi will follow,” al Tayer said.

Work is also in progress in constructing service roads in the Business Bay area, he added. simultaneously, work is also in progress on phase two of the Dubai Canal project, which will see the construction of bridges on al Wasl street and on Jumeirah Beach Road. These will include flyovers replacing traffic lights at the al hadiqa street-Wasl Road junction, as well as the Jumeirah-athar-Wasl roads junction.

Phase three of the project consists of excavation work on a three-kilometre canal, which is well underway. it will connect Dubai Creek from Business Bay to the arabian sea.

Phase three will also include the construction of canal banks, the building of three pedestrian bridges over the canal and the development of four marine transit stations. it will also include filling works to build

a man-made peninsula along Jumeirah Beach Park, doubling the beach line of the park and increasing the park area, the executive director of the RTa said.

Work is currently underway to complete the protection of utility lines and the relocation of sewage lines on both sides of the canal, while a sewage pumping station and coast works for the breakwater come under phase three works.

The bridges are being built to ensure smooth traffic flow over the canal, while also allowing boats and yachts to navigate smoothly around the canal on a 24-hour basis.

The bridges on sheikh Zayed Road will span 800 metres, and work on them will include the moving of existing utility lines impacted by the canal, in addition to the lighting and water fountain works planned for the bridge, al Tayer explained.

The entire project is expected to be completed by the middle of 2016.

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Big project me finDs out how health anD safety stanDarDs in the gcc are being improveD – Page 28 9

THE BIG PICTURE

MECONSTRUCTIONNEWS.Com

Mind the Floor

italian surface protection firm fila recently organised an event for construction professionals at the armani hotel in duBai. jerusha sequeira sat down with francesco pettenon, fila group commercial director, to get his take on why Builders need to pay more attention to flooring Why did Fila decide to organise this event?

We did this special event for top architects and developers because it is very important that from the beginning they specify our products. Too often we are called only when a problem occurs, and then most of the time, it’s too late. So it’s very important that they anticipate with this training, with this information, we dissipate the problem giving the right solution, giving the right advice.

What are some common mistakes as Far as Floor care is concerned?

90% [of companies] use cheap products.

That comes with strong acid. You destroy everything. You destroy the tile, you destroy the stone and you have to restart again.

Additionally, contractors underestimate the importance of the maintenance. They don’t calculate the cost of it, and mainly there’s a lack of knowledge of the material. And this is our job. But of course we’re just one company, so we do a lot of training, a lot of seminars.

But it is tough, because most of the time they come too late and they want a fast and cheap solution that works, but it doesn’t work. Even the tile manufacturers and some marble companies, they don’t advise the customer.

What’s your take on the market For your products in the region?

UAE is our biggest market. We have a strong presence in Qatar. Then in Bahrain a little bit. It’s a tough market. Oman with few projects, then Saudi, another tough market. The challenges in Saudi are to do with regulation. They have a lot of barriers to entrance of chemical products.

Every market has its own timing for these

kind of products. When the quality of the building goes up, then it’s the right time for us. Every market has its own speed, has its own time for these kind of products. hoW does Fila diFFerentiate itselF From competitors?

We are the most expensive when you buy the product, but in the medium to long term we’re the price-competitive ones. They save maintenance, they save ripping out the floor, and we’re talking about a small percentage.

Our product costs about 2-3% of the entire cost of the floor.

What advice Would you give to contractors?

It’s very important that they protect floors beforehand, and this solves a lot of problems. My advice would be to have the right stone consultant, to study the material first. And to think on the entire process, installation and maintenance. I would also advise contractors to use the best technical supplier.

There are some really professional suppliers, and regarding the aftercare, maintenance and protection beforehand, we are the experts. So really, to use the experts in the field.

best practice Using the right suppliers can help contractors avoid problems down the line.

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Big project me finds out how choosing the right contractor can stop disputes – Page 42

APRIL 2015

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NEWS ANALYSIS

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Capital on the Rise Abu Dhabi is seeing an increase in low to medium cost housing units as the cost of living continues to rise.

APRIL 2015

MEconstructionnEws.com

NEWS ANALYSIS

All eyes on Abu DhAbi The UAE capital is stepping up its retail and tourism offerings, with several upcoming high-profile projects and events.

However, oil prices and housing affordability remain key concerns.

Jerusha Sequeira reports

P

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laying host to major global events like a F1 Grand Prix and the Volvo Ocean Race in the past few months has been a great help in putting Abu Dhabi on the map as far as tourism is concerned. Coinciding with the Grand Prix was the opening of the much anticipated Yas Mall, Abu Dhabi’s first major destination mall, developed by Aldar Properties. Yas Mall and other new retail projects like Capital Mall and Al Reef retail added 326,000sqm of retail space to the market in the fourth quarter of 2014, according to a report by real estate consultancy JLL. While no major malls are expected in 2015 or 2016, from 2017 onwards, shoppers will have more to choose from, with projects like Al Maryah Central, Saadiyat District, Reem Mall and a Marina Mall extension scheduled to enter the market.

In line with developments on the leisure and retail front, the hospitality sector fared well in the city last year, with hotels reporting average

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NEWS ANALYSIS

MEconstructionnEws.com

“as the Cost of living has Risen oveR the past 12 months, theRe has been a moRe notiCeable inCRease in demand foR low to middle inCome units” occupancy rates of 85% in the events season.

The tourism sector is expected to continue to flourish in coming years as other anticipated projects open their doors, like the Louvre and Guggenheim museums in Abu Dhabi.

However, as the emirate looks to cash in on tourism, it continues to face key challenges like providing affordable housing in the wake of increasing inflation. Additionally, oil prices – while perhaps not a major concern at the moment – have already led to softening of some segments and could slow development.

ResiDentiAl peRfoRmAnce in 2014

Average residential rents in the capital increased in the fourth quarter of 2014 by about 3% on the previous quarter, and by 17% compared to

Abu DhAbi to host 9th CitysCAPe Cityscape Abu Dhabi is gearing up to host more than 130 exhibitors this month, up 15% from last year. The 9th edition of the property show will take place on April 21-23 at the Abu Dhabi National Exhibition Centre.

“The event turned a corner in 2014, as we saw over 17,000 attendees over the three days, a 15% year-on-year increase,” says Wouter Molman, director of Cityscape Group at Informa exhibitions, the organisers of Cityscape.

He predicts 15% growth this year, due to a higher number of registered exhibitors.

“Investor confidence is still on the rise, and we predict that this year the majority of our visitors will be coming from not only Abu Dhabi but the rest of the GCC as well. The recovery in real estate prices, a bounce in bank financing for construction and the return of off-plan sales have motivated developers to resume projects that were on hold in both Abu Dhabi and Dubai,” he adds.

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new participants at this year’s Cityscape include eagle Hill Properties, with emaar chairman Mohammed Alabbar on the board. Returning exhibitors include Aldar Properties, Tourism Development & Investment Company (TDIC), Mubadala, Manazel, Bloom Properties and Reem Developers.

APRIL 2015

the same period in 2013, according to a report by real estate consultancy CBRE. “Despite rising housing stock, the Abu Dhabi residential market continues to outperform most other property assets,” says Matthew Green, head of research and consultancy at CBRE. “In total, around 35,000 new residential units are expected to be completed over the next three years, with a large portion being from within master-planned communities. Additionally, widespread relocations are expected as residents look to move away from inferior properties.”

According to JLL, about 1,600 units were added to residential stock in Q4 last year with the delivery of the Burj Mohammed Bin Rashid in the World Trade Centre (WTC), along with mixeduse schemes in Khalifa City A and Capital House in Capital Centre. Q4 2014 also saw a spike in interest from end users looking to buy their own homes, prompted by imminent lease expirations or planned relocations as rents continue to rise.

Rising rents are not the only issue Abu Dhabi residents have to contend with. Data from the Statistics Centre Abu Dhabi suggests that inflation has been rising, as the consumer price index grew 4.1% year-on-year in December, with residential costs contributing 6% while utilities and fuel contributed 7%.

“As the cost of living has risen over the past 12 months, there has been a more noticeable increase in demand for low to middle income units and also for non-prime areas of the capital,” Green notes, adding that this is driving rental growth in more affordable locations.

The push for affordability means that residential units on the outskirts of the city have surged in popularity, with housing units in areas like Mohammed bin Zayed City, Mussafah and Khalifa City A and B becoming viable alternatives for budget-conscious tenants. More residents are flocking to these areas as they see a growing number of schools, healthcare facilities and retail centres, the report says.

The lower and middle income range of the residential market has probably been “underserved in terms of development”, Green says.

“You can see that by the way that the market

Reem dReams Reem Island is where the majority of new residential supply is going to be completed over the next three years.

has evolved, where people try to use split villas and split apartments. And that has been driven by the fact that there hasn’t been a significant amount of development which has been focused on the right types of areas.”

But the challenge with building housing specifically meant to be affordable is that market forces inevitably boost demand, leading to escalating prices, Green points out. “If it looks affordable, then it can obviously attract speculation, it can attract sectors that will basically ultimately end up pushing the price up. It’s open to market fluctuations. Now, if there’s not enough supply in the market, then obviously rents can be pushed up quickly and something which is supposed to be affordable will not be affordable for particularly long.”

The government will have to take a more proactive approach in ensuring rents remain

NEWS ANALYSIS

outlook foR office spAce

The office market remained largely stable in 2014. Grade A office rents increased by 5% on average in Q4 2014 for the second quarter in a row, while average grade B office rents remained stable for the last five quarters, JLL notes. Government spending remains the key driver for demand in 2015, but with the oil and gas sector facing a continued slump in prices, demand for new office space could slow down, reports suggest.

“Given the current environment, it is likely many existing new office requirements could be placed on hold,

home Coming n 35,000 – new housing units expected in Abu Dhabi over the next three years

n 17% – year-on-year growth in residential rents last year

with a possibility of some occupational downsizing should the current pricing trend be maintained for a sustained period of time,” Green says.

While neighbour Dubai has diversified away from oil, Abu Dhabi will be more affected by declining prices. But although certain sectors may face slower growth due to the oil slump, cheaper oil can boost other segments, Green points out. For instance, sectors like tourism and retail could potentially see more growth as airfare and costs of distribution get cheaper.

WhAt to expect in 2015

Looking ahead, rents are not expected to undergo very dramatic increases in the capital. “Certain projects may

still [see] some level of growth, but generally pretty much across the board it’s going to be pretty flat, and that is a consequence of slightly subdued economic conditions,” Green says.

While residential rental rates will recover this year, it will be at a slower pace than the first half of 2014, with JLL forecasting growth slowing from double digits to single digits on account of cuts in government spending.

However, Green says there are a few residential and commercial projects to keep an eye on.

“Reem Island is where the majority of new residential supply is going to be completed over the next three years, and I think that’s going to be the main focal point of the market,” he concludes. n

APRIL 2015

MIDDLE EAST

affordable for lower income segments, rather than leaving things in the hands of individual landlords, he adds.

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In ProfIle GeorGe BerBari

APRIL 2015

MEconstructionnEws.com

In ProfIle GeorGe BerBari

EnginEEring the Fut ure

Big Project ME sits down for a wide-ranging chat with the fiercely opinionated George Berbari, CEO of DC Pro Engineering, as he looks to change the way the construction industry views district energy and green MEP design he gave a presentation on ‘The Threat of Technology Stagnation on District Cooling’.

This is a particular bugbear for him, and he admits that changing perceptions and preconceived notions can be a bit frustrating.

“I have a role in guiding this industry, and I’m saying ‘wake up’. This is not the place where we have to be, to stagnate with something that’s 10 years old and not be really sustainable, and that’s especially when there are smaller, alternative systems that are either as efficient as or more efficient than district cooling in its current status. We either have to evolve, or die.”

That sentiment is prevalent in his presentation, which explains how synchronisation of district cooling tri-generation with renewable energy sources can result in 75% savings in primary energy, compared to electricpowered district cooling. District cooling systems

“When We adopted district cooling, it Was saving 40% of energy compared to hvac. so noW, if you find technology that saves more energy, Why isn’t it being adopted?”

already offer a 40% saving on power consumption compared to air-cooled systems, which is why there are now more than five million tonnes of district cooling systems installed in the GCC. “What we’re promoting is a model of trigeneration that has a distribution centre that is much closer to the city centre, and where heavy recovery is transferred into cooling energy mostly, while some is used for hot water. We found that this model saves up to 75% of primary energy compared to district cooling. When we adopted district cooling, it was saving 40% of energy compared to HVAC. So now, if you find technology that saves more energy, why isn’t it being adopted?

“In 2011, Dubai had reached a 20% penetration rate for district cooling. UAE in general was at 11%. Dubai is putting forward a target of 40% penetration by 2020 or 2030.

Normally, they would achieve that. Abu Dhabi is also targeting about 30% penetration.

However, my message to them is that the current technology is offering very little to the green building movement. It should be evolving to a place where it is tri-generation, plus renewables.

Then we’re offering something really substantial.”

With the UAE committed to 7% of its energy use being provided by renewable energy by 2020, the move towards tri-generation would certainly be a step in the right direction. However, it’s the wider GCC that Berbari sees as a bigger challenge.

“Saudi Arabia is a bit more challenging, because they’ve fragmented the decision-making into several areas. You have the King Abdullah City for Renewable and Atomic Energy that deals solely with renewables. Then you have the Saudi Energy Efficiency Council that deals solely with equipment deficiencies and works in consensus with equipment suppliers and manufacturers, and you also have the Saudi

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I

t only takes a few minutes of conversation with George Berbari, CEO of DC Pro Engineering, to learn that he is a man of strong opinions that he’s not afraid to air.

Having spent more than 30 years in the HVAC industry, 25 of them in the GCC, he’s probably more entitled than most to speak his mind.

A Lebanese citizen, Berbari was part of the team that set up regional district cooling giant Tabreed. Having established himself as one of the foremost experts in the field of district energy, he is now focused on turning DC Pro into a regional authority and leader in the fields of district energy and green building MEP design.

“It’s our tenth year now. DC Pro has led the Middle East in developing the district cooling and the green MEP movement. We are one of very few businesses with a mission to evolve the industry, rather than focusing purely on profit, loss and growth. Which is important for every company of course, but we’ve taken a stand of long-term engagement with the market. We want to lead the market, not be led by the market,” he tells Big Project ME during an interview at his offices in Sharjah.

“We’ve always managed to set trends in the Middle East, and to do that you have to have a passion for your business and a love for people and society. It’s almost like volunteering work, what we do. Because you know that these efforts are not being compensated financially, but it’s what I see as a social responsibility for companies.”

Having now established DC Pro Engineering as a force in the market, Berbari’s next challenge is to continue pushing his company, and by extension the industry, forward. In March of this year, during the third Annual District Cooling Stakeholders Summit at the Dusit Thani Hotel in Dubai,

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In ProfIle GeorGe BerBari

Electric Company that tries to impose insulation on all new buildings, otherwise you don’t get the connection to power,” he explains.

“As human beings, we struggle with the right of free ownership and when the state should interfere. I’m writing a book about how to get that right – between the stick and the carrot. If you’re inefficient in your house, I can’t force you, as a private owner, to do insulation. But what can I do? Instead of putting a slab rate on consumption, which is very wasteful in the GCC, especially in Dubai and Saudi Arabia.

“What we want to do is put slab rates per square metre. So therefore, if you’re efficient, then you’ll benefit from low slab rates. If you’re inefficient, then you are penalised by much higher rates. These penalties then don’t go

MEconstructionnEws.com

to the utility companies. Instead they go to the municipalities, where they will be used as funds. For example, if you want to insulate your house, then the municipality will give you 50% of your costs, so that’s the carrot and the stick.”

Berbari also outlines some of the challenges cropping up during construction for the 2022 World Cup stadiums in Qatar. With tenders for the projects released, the district cooling expert in him flinches when he talks about these projects.

“Now the tenders have been released, and the energy centres that are feeding these tenders are as big as 87,000 tonnes. We saw the design, and we addressed it with the Aspire Committee. We showed them an alternative that could save much more energy. The current design is using as much land as the stadium, probably. It was costing too

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Qatar challenge Berbari says that district cooling projects in Qatar are hugely overserved and energy-inefficient.

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much and was too inefficient. We put forward an alternative proposal, where we could save land and about 30% of energy, and have a much more effective design. I did this study without any request from anybody. It takes that kind of initiative from people. When they called us, I had it ready. Their first impression was ‘can we improve it by that much?’ They were interested; who doesn’t want to reduce construction costs by half and improve efficiency at the same time?”

DC Pro Engineering has a reputation as the go-to company for complicated projects, and this attitude reflects Berbari’s willingness to share and spread information throughout the regional construction industry.

Dubai and its neighbours in the GCC are the most active constructive market on the globe.

In ProfIle GeorGe BerBari

green mep Berbari is an advocate for greater sustainability and less water wastage through more efficient MEP systems.

also work in Singapore, the US, Australia and Canada – we have several offices worldwide.

“Contractors need to have boots on the ground, but consultants can engage with local companies and be an engineer of record, so it’s very easy to expand. Singapore has managed to distinguish itself, much like Hong Kong, as an engineering centre for the Asia Pacific region. I think Dubai should follow suit. This is my take on the market. People and companies who are only based in Dubai, they will choke.”

This isn’t just empty talk either, as the CEO has ensured that his firm practises what he preaches. A year ago, Berbari signed off on a joint venture agreement with the Greek consultancy Ergon EMA. Created in 2011 through the merger of six Greek consultancies, the firm provides

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“singapore has managed to distinguish itself, much like hong kong, as an engineering centre for the asia pacific region. i think dubai should folloW suit”

Therefore, it’s only natural that there has been an influx of construction consultants and contractors setting up shop in the Gulf. Despite the recovery of the market from the slump in 2009, there are still concerns about whether there are more companies than projects, as Berbari puts it.

“What makes it more challenging is that every single construction company in the world wants to come to Dubai, to the UAE, to Qatar.

What I always advise consultancies is to never rely on a single city. You see consultancies that relied on Abu Dhabi or Dubai and ignored the rest of the region. This is a risky strategy.

The more you diversify into the region and beyond, the better for you. This is especially true when Dubai is a major service centre to Africa. DC Pro works extensively in Africa, we

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do your due diligence Berbari warns firms to do their due diligence with their business models or face the consequences in a ruthless construction market.

interdisciplinary services around the world.

“We’re now bidding and have won several projects together. This is a way to help DC Pro keep its focus on MEP, but also to get us engaged in architecture as well. Even though we started on big MEP projects fairly early on in the company’s history, we found that we could not grow our MEP sector to the level that we wanted to. One reason for that was because there were several important architects who had in-house MEP departments or had associations with MEP organisations.

“Therefore, it was difficult for us to penetrate into the market from an architectural point of view. This led to a change in our vision, and so we added architectural engineering services so as to have a larger market share of MEP,” he explains.

This approach appears to be bearing

dividends, with a successful 2014 seeing the consultancy of 50 employees achieve record turnover of $5.71 million in engineering fees alone. This translates into more than $272 million worth of projects handled in just a year’s time.

Despite this, Berbari says he’s not entirely happy with how 2014 went. When he and his management team examined the year in detail, he found that there was a discrepancy with projects, with some having lost a large amount of money, while others actually made money.

As a result, he vows that this year he will be monitoring projects closely to try and minimise losses and improve his company’s efficiencies, which in turn will improve its profitability.

“When we work for contractors, we find that they are owned by consultants and owners. We are at the bottom of the food

chain. So we have a lot of aborted work, and a lot of unpaid aborted work, when we work for contractors, unfortunately. We find that contractors squeeze you a lot in terms of engineering fees, and ask you to work double or triple [the amount you normally would].

“So we’re trying to avoid working for contractors and are instead focusing on working for end users and customers, where, if you meet what they want, your changes will be minimal.

What we’ve seen is that companies who are not professional are getting out of the game.

So my advice is for companies to do their due diligence with their business models – look at how they price projects, how they control costs – whether it’s in the engineering sector or the construction sector. It’s crucial today that people put plans in place,” Berbari warns.

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“you see consultancies that relied on abu dhabi or dubai and ignored the rest of the region. this is a risky strategy. the more you diversify into the region and beyond, the better for you”

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Site ViSit Juma al ma Jid Tower and Carpark Building

MEconstructionnEws.Com

Working in TighT SpaceS

Big Project ME tours the under-construction Juma Al Majid Tower.

Gavin Davids reports on the work that Ali and Sons Contracting and Doka are doing on this addition to Sheikh Zayed Road’s skyline

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he buildings that line Dubai’s Sheikh Zayed Road are amongst the best-known in the world, with several marketing and tourism campaigns focusing on the towering skyline that dominates the city. The development of the area around the highway linking Abu Dhabi and Dubai has turned a barren stretch of desert sands into some of the most coveted real estate in the region.

With the likes of the Dubai World Trade Centre, the Burj Khalifa, Business Bay and Dubai International Financial Centre all rubbing shoulders with each other, it comes as no surprise that this is real estate in demand. However, this also means construction here is often a highly complicated and considered process.

That is precisely the challenge facing Munzer Hayri, project manager at Ali and Sons Contracting, the contractor building the Juma Al Majid Tower on Sheikh Zayed Road.

Situated near Business Bay, the project is a $31.87 million residential tower with 47 floors, along with a seven-storey (plus three basement levels) parking lot that will also house the tower’s swimming pool and recreation facilities.

One of the biggest challenges facing Hayri and his team is working in a busy area with a limited amount of space. There is another construction site on one side and the Dubai

PROJECT

Juma Al Majid Tower and Carpark Building

DEVELOPER

Juma Al Majid Group

PROJECT AREA

52,000sqm (for tower)

BuiLDing hEighT

210m

BuiLDing TyPE

Mixed-use building (residential and commercial)

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Metro on the other, so establishing a wide perimeter around the project was not an option.

Outside of the standard assessments and procedures, some of the earlier challenges faced were in relation to the project’s site,” Hayri tells Big Project ME during an interview at his site offices. “[Given that the site is] located only a short distance from Dubai’s Metro line, we had to ensure that all relevant NOCs were stamped and acknowledged by the RTA. This was essential before the piling could commence. In line with the strict standards issued by the RTA, no construction can take place within a distance of 30 metres from the Metro lines or stations themselves.”

Expanding on the space challenge facing the project team, Hayri points out that the site area is so tight, his team had to rent the land for their site offices from the Dubai Municipality.

They also had to rent a smaller patch of land to house their stores for the project.

“Another one of the earlier challenges to overcome was also in relation to our location.

As an area which is under development, construction in the downtown area often means working on a small footprint, in our case meaning we had to rent a small area on an adjacent plot from the Dubai Municipality to accommodate our site offices and storage facilities,” he explains.

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Site ViSit Juma al ma Jid Tower and Carpark Building

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Site ViSit Juma al ma Jid Tower and Carpark Building

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fast formwork Doka’s formwork systems have enabled the construction team to work quickly, safely and more efficiently.

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“In total, the two structures are 52,000 and 17,000 square metres respectively, meaning we’ve had to plan our logistical operations very carefully when it comes to moving equipment, workers and materials to and from the site.”

The site consists of two plots, with the tower covering an area of 1,200sqm on the first, adjacent to Sheikh Zayed Road and the Metro.

The parking lot will have a total area of 1,000sqm.

“It is a residential project. Each floor will have four flats, except for the ground floor, which is going to be a showroom. It’s going to be 47 regular floors, and we’ll have a mechanical floor on the 24th level,” Hayri outlines.

“The support building at the back will be the parking – there will be three basement levels and seven floors. The roof will house the facilities for the building – the swimming pool and the other recreation facilities. The building itself

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will have just the one basement, which is going to be for the electrical substation,” he adds.

Although construction on the project started in late 2012, the project is still only 23% completed. Hayri is quick to explain that shortly after Ali and Sons Contracting was awarded the nomination, major design changes had an impact on the construction start date and caused the delay.

“We are supposed to be [further along]. We were supposed to be at 40% or 45%. But after the nomination, within two months, I could say that 40% of the design was changed by the client [Juma Al Majid Group]. There was a change in management, and the new manager wanted this building to have a similar look to the buildings around the Burj Khalifa.

“The second change was that they had the substation in the ground floor and there was

no basement in the tower. It was a waste of a nice area on Sheikh Zayed Road. So that was another change, to create a basement for the tower and to have the substation in there, and then to have the ground floor as retail. Plus we had the swimming pool in the tower itself.

They changed that to have it in the car park.”

With construction having reached the 17th floor of the tower and work on the basement and raft complete, Hayri insists that work is back on track and on schedule to be completed by September 2016.

As speed is of the essence, the Ali and Sons team have been keen to incorporate time-saving measures on the project. Among the best time-saving devices are the Doka formwork systems that allow the team to aim to achieve cycle times of six days, faster than the contractor’s anticipated seven days.

Site ViSit Juma al ma Jid Tower and Carpark Building

“I can only speak in general terms; however there have been clear advantages to using the systems we agreed upon in terms of supporting the speed of construction, mostly through approaching the project with a craneindependent solution in mind,” he points out.

Providing over ten different systems for this project alone, Austrian formwork specialist Doka was selected by Ali & Sons in order to provide a fully crane-independent formwork solution.

Where previously concrete placing booms (CPB) were located on the slab itself, Doka’s SKE100 Plus allows the CPB to be self-climbing, helping to maintain the pace of completing core walls in fiveday cycles and the shear walls and columns in four.

Other systems that have been used to maintain the pace of construction include Dokadek 30, which once integrated with the Table Lifting System (TLS) can move up to 40

panels (or 120 square metres of formwork), or two tonnes of materials in one go.

“The simple flat slab was very ideal for Dokadek slab formwork. With the use of two full sets with drop heads, forming one level can be done in one day,” the company explains in a statement.

As part of the process, the project team has dedicated more than 90 workers to the formwork alone, Hayri says. “We have 75 for the shifting and fixing of the platforms, and we have 18 for the jacking. This will be standard as we go on, it will stay the same.

“Doka have provided both an instructor and dedicated project coordinator, enabling our teams to familiarise themselves with the systems being used. Most importantly, the aforementioned cycle times can be maintained thanks to the ongoing support and training provided,” the company adds.

For the entire project, the project manager says

that 400-450 workers, including subcontractors, are currently on-site. However, when the construction programme hits its peak in the next three or four months, that figure is expected to reach 1,000.

“Currently we are working six days a week, with the night shifts being scaled back to approximately 30% of the full operational capacity. As we get closer to the most labour-intensive part of the construction in a few months, the night shift will be equal to the day,” the project manager says.

To ensure that this happens, the contractor had to secure all the permits to do the job properly, including night permits, noise permits and all the myriad permits required by law.

“We are adhering to all permits, including those related to noise, working at night and so on. While a challenge, we are lucky that we’re not too close to any occupied residential buildings.

Behind us is another construction site that has

“the metro side is a challenge. for everything, for every step, you have to take a no objection certificate [noc] from the rta. and then you have to have full protection and take full precautions due to the elevation of the metro” Doka sysTems useD on-siTe n Large-area formwork Top50

n CB150F n Automatic climbing formwork SkE50 Plus (Corewall Formwork)

n Automatic climbing formwork SkE100 (Shearwall Formwork)

n SkE50 (Shearwall Formwork)

n Protection Screen X-climb 60

n Dokaflex 1-2-4 n Panel floor formwork Dokadek 30

n Load-bearing Staxo 40

n Load-bearing tower Staxo 100

n Doka Table Lifting System (TLS)

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back on track Despite several delays due to changes in the design, work on the project is back on track and will be completed

by September 2016.

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Site ViSit Juma al ma Jid Tower and Carpark Building

sub-ConTraCTors n Piling and Shoring: Bauer (nominated

by Ali & Sons)

n MEP: Al Arabia n Elevators: Al Arabia Sigma

n Formwork: Doka

maChinery on-siTe n 2 x hoists n 2 x Bobcats n Telehandler n Forklifts n 2 x dumpers n 2 x front loaders

all hands on deck The number of workers on-site is expected to reach 1,000 once peak construction is hit.

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“if there are any incidents or problems with any of the activities – even if it’s a near miss – then we’ll do an extra toolbox education and conduct meetings on site safety”

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MEconstructionnEws.Com

just been completed, and on the other side the cooling district area,” explains Hayri.

This will come in handy during the coming summer months, when the mid-day work restrictions kick in, as well as during the Ramadan month, which is expected to be June this year.

“When considering the change in labour hours during both the summer and Ramadan, we follow the same rules as every other company from our industry. Six hours during the day, and then we have the night shift. Working hours from 15th June to 15th September will be from 6:00 until 12:00, with the night shift commencing after Iftar, most likely at around 22:00.”

Another aspect that Munzer Hayri will be paying close attention to is worker safety at heights. He explains that the project team follows the system of method statements, which means that for any activity, method statements will be submitted and risk assessments will be conducted.

“As a tall standing structure, we take the necessary precautions to ensure all our staff are both fully equipped and trained, in line with the system of method statements. For any activity, there will be method statements submitted, and for any activity you will have a risk assessment conducted.

“After the induction process is completed, ongoing training and checks are completed throughout the construction process. We also have specially designed safety harnesses for working at height. In the event that we encounter any incidents or problems, including near misses, we conduct extra education at the earliest opportunity,” he asserts Doka’s hardware has also been integrated to support the HSE aspect of the project.

Using its Protection Screen X-Climb 60, this hydraulic system offers a fully enclosed and safe working environment for labourers over two working slabs and one re-propping slab, while providing protection to the Metro.

In light of recent events, one area under close scrutiny is the quality of building materials in terms of fire and life safety. Having seen the Torch Tower go up in flames, Hayri is adamant that his building will not suffer the same fate.

“We have all the safety requirements as per Dubai Municipality and per our system. All of it is complied with and under control. All the people who need third-party certification, they are getting that and before it’s expired, the renewal is done.

Plus, we’re giving third-party certification for Metro-related work – the tower crane operators, the diggers – for this they have additional training for working alongside the Metro,” he concludes.

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Safety First

Construction projects in the GCC haven’t always had the best safety track record. Jerusha Sequeira investigates how contractors and consultants are working to change this

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he health and safety of workers on construction sites has always been a hot-button issue in the UAE and GCC. The region has been subject to intense scrutiny from international entities for failing to pay adequate attention to worker welfare.

FIFA president Sepp Blatter admitted last month that “more must be done in Qatar to ensure uniformly fair working conditions for all” on the 2022 World Cup construction sites, although some progress had been made.

Closer to home, Abu Dhabi developer TDIC has also come under fire for mistreatment of workers on Saadiyat Island projects, including the upcoming Guggenheim Abu Dhabi and New York University’s campus in the capital. Allegations made in a Human Rights Watch report released in February [see box out] were strongly denied by the developer, which rejected what it called “unfounded conclusions” by the New York-based entity.

However, despite the dubious reputation of construction projects when it comes to worker welfare, consultants and contractors say major gains have been made in the UAE and the region in terms of health and safety.

“I’ve been in the UAE for eight years now, and I feel that there’s been some dramatic improvements in health and safety standards across the region. And a lot of that is being driven by government,” says Rob Cooling, director of Health & Safety Middle East at WSP. John Milligan, QHSE Director at WS Atkins, has also been working in the Middle East for eight years and notes that he’s seen a steady improvement. “Part of the reasons for that is the

maturing of regulatory enforcement,” he says.

The statistics might indeed indicate an improvement. Last year, The National reported that there was a 32% reduction in the number of deaths in Abu Dhabi caused by work at height between May 2012 and May 2013. The decline was observed following the Height Aware safety programme, which aimed to highlight injuries in sectors like construction and oil and gas.

Big Project ME wondered, therefore, about the most common hazards and challenges that safety professionals have to deal with on-site, and how consultants and contractors create a culture of safety on projects.

Commonly faCed hazardS

The most fatal hazards, Cooling says, are lifting operations, work at height, excavation work and vehicle movement on sites. “We have a lot of cranes on-site doing some major lifting operations, and the quality and the testing of that equipment is a common issue that we’re having to face. So in terms of our fatal hazards it gets the most attention.”

Moreover, in a country known for delivering projects at a fast pace, on-site accidents can also be chalked up to a lack of planning and tight timeframes, Cooling points out. “In the construction industry, there’s always a lot of pressure to finish projects quickly and not always sufficient emphasis is given to planning.” Health and safety requirements need to be made clear from the onset of a project in order to address this, he adds.

Apart from obviously dangerous work like working at height or lifting operations,

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“In the constructIon Industry, there’s always a lot of pressure to fInIsh projects quIckly and not always suffIcIent emphasIs Is gIven to plannIng”

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Long-Term heaLTh of workers needs more aTTenTion While strides have been made in improving safety standards across construction sites in the UAE, the health aspect of health and safety has yet to receive adequate attention. “The focus still is very much on safety as opposed to health, so I feel that quite often, and particularly in construction, there is a great deal of attention that’s given to things like the fatal hazards [like] working at height that kills a lot of people every year,” Cooling says.

“But i think the next progression really is to focus more on worker health and worker health promotion and the occupational health hazards, things like noise, heat and humidity, occupational fatigue, stress, that are probably not given at the moment the attention that they deserve compared to safety.” the fact that several health issues associated with construction work tend to only show up over the long term adds to the problem, he notes. “the tendency is to focus on worker safety and i think quite often

the challenge is around latency, that these health effects might not be apparent until later years in the life of the worker. so sometimes it can be a bit of a challenge to focus on things that might affect workers in the future when they may be back in their own country, as opposed to things that are here and now and could cause serious injury today.”

Milligan echoes Cooling’s comments, stressing the role of pre-employment screenings in ensuring the health of workers as well as preventing the outbreak of contagious diseases. “What we’ve observed over time is that some of our mature contractors are already providing pre-employment screenings for workers. Most of the countries in the GCC where we work, they have good controls in place, especially with communicable or high-risk diseases,” he says, though he admits that worker health has “received scant attention in the past”.

“We are expecting improvement over the coming years as the market matures, but we’re not seeing enough of it at the moment.”

a common hazard across sites is something typically overlooked: housekeeping.

“The common problems on construction sites, people refer to them as housekeeping and keeping the site organised,” says Peter Jolly, director – Health, Safety & Environment at Al Jaber Group. “Whereas really, when you look at the housekeeping problems, you see other things which aren’t even housekeeping in terms of keeping the place tidy but they’re actual hazards: fire hazards, trip-and-slip hazards, bits of wood with nails in it, shards with metal.”

Paying attention to perceived housekeeping problems that are really hazards not only makes the site safer, it also organises it, he adds. “An organised site is an efficient site, not just a safe site, and so that improves productivity.”

David Sweed, regional SHEQ & Construction manager, Mouchel, echoes Jolly’s comments about the link between safety and productivity.

“In truth, a safe site is more efficient than an unsafe site. So the perception of safety being a hindrance, of safety slowing production,

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keep It clean A well-organised site free of hazards can drastically improve safety standards.

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traInIng day While governments provide regulations, training of the labour force is up to consultants and contractors, who uphold safety standards on-site.

“If we fInd that a contractor Isn’t observIng theIr method statement, then we wIll wIthdraw consent to work for all of the same actIvItIes rIght across the whole constructIon sIte”

training and ComplianCe

While governments may do their bit in providing regulations, it is generally up to consultants and contractors to create awareness, uphold safety standards on site and ensure rules are being followed. “We do spend a lot of our time actually trying to raise health and safety awareness amongst contractors. So we get involved in providing regular toolbox talks, or short training sessions on health and safety topics,” Cooling says.

But with multicultural staff on projects, training often needs to be adapted to be understood by all. “Quite often with the guys that are on-site, they’ll speak different languages.

We deliver briefing in languages that are obviously appropriate for the target audience, to make sure that the message is understood.”

Training, however, needs to go hand in hand with enforcement, the consultants note. In order to ensure compliance with safety standards, Milligan says Atkins has introduced a concept called “consent to work” on its projects, wherein

contractors have to go through a two-step approval process to carry out construction activity. This is done by emphasising the importance of the method statement, a document often not given its due by contractors.

“Method statements are produced by contractors to describe the methodology for a particular aspect of the construction.

Commonly, contractors produce these method statements just for approval, and then they neatly get filed away. They’re no longer used as a reference document during construction,” he says.

In Atkins’ consent to work procedure, the contractor needs to submit the method statement for prior safety approval to Atkins and then demonstrate that he can build according to the document.

“If we find that a contractor isn’t observing their method statement, then we will withdraw consent to work for all of the same activities right across the whole construction site, which would be a complete nightmare. For

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of safety costing money, is really not the truth. If you see a site that is safe, you know behind it that it’s well-run, it’s wellmanaged and producing a good product.”

Moreover, Sweed notes, health and safety professionals can face a host of challenges on remote sites where easy access to healthcare facilities isn’t available. An example of this, he says, is one of Mouchel’s projects, the Um Al Aish liquefied petroleum gas filling plant in Kuwait, 100km from Kuwait City.

From day one of the project, a trained nurse and a medical centre were available within the compound or confines of the site.

“When activities of high risk have been undertaken, then we’ve been able to arrange for a paramedic and an ambulance to be on-site, to be there in case there was a serious incident.

If we’ve been doing quite a dangerous activity, such as confined spaces entry, then we need to have the right emergency rescue teams in place with appropriate equipment so that people can be safely removed if there was an accident.”

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instance, if it was block-laying on a high-rise and all of a sudden we stopped all blocklaying just based on a single infringement, then you could see that it would have a considerable impact on the contractor.”

In order to overcome language barriers, Atkins also advises contractors to develop method statements with lots of photographs, he says. Moreover, the firm has developed a method of classifying contractors according to maturity levels and refuses to work with contractors below a certain level of competence.

“What we’ve introduced in Atkins is a method for classifying contractors according to [their] level of maturity. And there are four elements to that. So the most mature of our contractors we classify as 1, and then it runs to 2A, 2B and 3.

The Tier 3 contractors are those contractors that we as a company have decided that we will not engage with,” he says, adding that Atkins has put in controls in the bidding process to ensure this.

“If we are sufficiently assured that contractor is not capable of implementing and sustaining the health and safety management system for the life of a project, then there’s clearly

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proof of safety Contractors should be able to prove that they have a good safety record before being appointed on projects.

TdiC vs. hrw: The baTTLe over workers’ righTs In February, New York-based Human Rights Watch (HRW) issued a report highlighting instances of worker abuse that it said were still prevalent on projects in Abu Dhabi’s Saadiyat Island. “Nearly five years after Human Rights Watch first revealed systematic human rights violations of migrant workers on Abu Dhabi’s Saadiyat Island, there remain serious concerns about violations of workers’ rights on the island,” the report said. According to HRW, some employers continued to withhold wages and benefits from workers, failed to reimburse recruiting fees, confiscated worker passports and housed employees in substandard accommodations.

Abu Dhabi’s tourism Development and investment Company (tDiC), however, was quick to deny the claims and issued a statement refuting the allegations. “tDiC rejects the report’s unfounded conclusions, which are outdated and based on unknown methodologies. We have established a comprehensive Employment Practices Policy outlining the standards required from the companies working on our projects, and laying out penalties for those found to be in breach of any aspect,” the developer said.

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HrW, however, claims these penalties are simply not enough. “the penalties for contractors and subcontractors are so small – at most 1% of the contract value – that they are unlikely to have a significant deterrent effect,” the body said.

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Meanwhile, tDiC insists that many of the issues previously raised have been addressed. the developer has established the saadiyat Accommodation Village to house workers, and says that all workers have access to their passports and medical insurance.

Grievance procedures have also been put in place for workers to address complaints, it said.

While HrW noted that progress has been made in the UAE overall with regard to labour law reform, it called upon international organisations involved in saadiyat projects, like the solomon r. Guggenheim Foundation and New York University, to “make their continued engagement... dependent on public commitments by the UAE government authorities and the EAA and tDiC to ensure that workers are protected from abuses.” in February, New York-based Human rights Watch (HrW) issued a report highlighting instances of worker abuse that it said were still prevalent on projects in Abu Dhabi’s saadiyat island. “Nearly five years after Human rights Watch first revealed systematic human rights violations of migrant workers on Abu Dhabi’s saadiyat island, there remain serious concerns about violations of workers’ rights on the island,” the report said. According to HrW, some employers continued to withhold wages and benefits from workers, failed to reimburse recruiting fees, confiscated worker passports and housed employees in substandard accommodations.

Abu Dhabi’s tourism Development and investment Company (tDiC), however, was quick to deny the

claims and issued a statement refuting the allegations. “tDiC rejects the report’s unfounded conclusions, which are outdated and based on unknown methodologies. We have established a comprehensive Employment Practices Policy outlining the standards required from the companies working on our projects, and laying out penalties for those found to be in breach of any aspect,” the developer said.

HrW, however, claims these penalties are simply not enough. “the penalties for contractors and subcontractors are so small – at most 1% of the contract value – that they are unlikely to have a significant deterrent effect,” the body said.

Meanwhile, tDiC insists that many of the issues previously raised have been addressed. the developer has established the saadiyat Accommodation Village to house workers, and says that all workers have access to their passports and medical insurance.

Grievance procedures have also been put in place for workers to address complaints, it said.

While HrW noted that progress has been made in the UAE overall with regard to labour law reform, it called upon international organisations involved in saadiyat projects, like the solomon r. Guggenheim Foundation and New York University, to “make their continued engagement... dependent on public commitments by the UAE government authorities and the EAA and tDiC to ensure that workers are protected from abuses.”

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SPECIAL REPORT SAFETY

going to be risk to their own employees and that will impact us massively,” he adds, defending the policy. “It’s not just about reputation loss. We don’t want our people working on a project where people are either being seriously injured or have died.”

However, he notes that the firm might consider working with Tier 3 contractors if there were sufficient assurances from the client that the contractor would improve, along with additional resources available to Atkins to support the contractor’s safety management.

While established or international construction firms may have a sound HSE policy in place, smaller players like local contractors or subcontractors may not. This is less of a problem than it used to be, but Jolly says disparities still exist. “Most of the time we have to look at costs, and therefore we could lean towards cheaper contractors. So basically the code of practice is if you don’t have a safety policy or if your safety policy is inadequate, then you use ours. It’s as simple as that.”

“We link that to the contract, and if they

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changIng notIons Health and safety should be the responsibility of everyone involved in a project, not just the HSE team.

APRIL 2015

MEconstructionnEws.com

“an organIsed sIte Is an effIcIent sIte, not just a safe sIte, and so that Improves productIvIty”

don’t provide or issue standard protective equipment, or they don’t provide enough supervision, then we can bring it in and we can back-charge them for it,” he adds. the next Step

When asked what improvements he would like to see in safety standards, Cooling points out that while legislation in the UAE – particularly in Dubai and Abu

Dhabi – is detailed and prescriptive, the next step is proper enforcement. Moreover, HSE aspects of a project need to be taken into account right from the start.

“It’s about getting health and safety embedded in the earliest phases of a project.

Because when it actually comes around to the construction phase, typically that’s often too late. A lot of our focus is how you get health and safety embedded in the planning and particularly the design phase of projects, and how to mitigate health and safety risks when it comes to construction.”

Additionally, despite the range of challenges that HSE professionals face, one of the key obstacles to be overcome is the notion that health and safety is only the responsibility of a HSE team, Cooling concludes.

“Everybody has a responsibility for health and safety, but in particular project managers should be managing health and safety in the same way that they manage costs, that they manage schedules, and manage other aspects of a project. I think that’s an important point.”

it in focus mobility

Future In Our Hands

Are mobile solutions the way forward for the GCC construction industry?

all avenues to improve productivity and efficiency through all levels of the sector.

Taking on huge infrastructure and development projects requires revolutionary change, through the introduction of new technologies and the deployment of new project management strategies in real time.

Despite heavy investment in the field, this is a neglected area in the industry, as a white paper released by Softweb Solutions, a US tech consulting firm based in Chicago, finds.

Globally, one of the foremost areas of investment and research is the development of sustainable mobility solutions for business and industry. With society embracing mobility

en masse, exploring this phenomenon further and adapting it to the specific needs of the construction industry will only benefit the construction industry.

In any construction company, project managers, architects and engineers are responsible for success or failure. They run multiple projects at the same time and often spend the majority of their time out of the office, on construction sites or travelling.

Mobile devices help them actively manage their projects and processes while keeping track of employees, costs and other vital information.

“The way we tend to see it is if you’re looking at the process of Building Information Modelling

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N

o matter where you go in the world, a country’s construction industry is an accurate barometer of the strength of its economy. Traditionally one of the largest employers and a major source of revenue, it’s often incumbent on the building industry to set trends and show the way forward.

Nowhere is this more relevant than in the GCC, with $103 billion of new projects set to be awarded in 2015. Another $72 billion of projects will be completed during the year as well, highlighting the importance of construction to the GCC’s general outlook.

Given its economic impact, it’s incumbent on construction companies to explore

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It In FOCUS mobility

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MIDDLE EAST

and creating this ever-enriching information model, then you have to look at it as two axes. The first axis would be the vertical axis – where you’re actually looking at the depth of information that you’re putting into the model, and that depth of information actually needs to be appropriate for whatever stage in the lifecycle of the project that you’re on,” explains Chris Palfreyman, director, Infrastructure Owners – Middle East and Africa, for Bentley Systems.

“The other axis is definitely about information mobility. It’s about how we expose the information to the people that want to consume it. There are people who create content and there are people who consume it. If you don’t think about the information mobility axis, then you’re going to end up with a lot of information that has been created that can’t be considered. These two things go together, in order to build a homogenous picture that people will benefit from.”

Peter Cheney, managing director of CCS South Africa, a developer of construction cost management software, points out that decentralising processes has made a huge difference in the way the construction industry has gone about doing business. “It has only been brought about by the use of the internet as a communications medium.

Certainly, decentralised processes are putting the responsibility for the captured information where the responsibility belongs, which is out there on the site.”

Cheney adds that with the communication infrastructure in the GCC being developed to handle mobile internet and transactions, construction firms in the region have no excuse for failing to adopt technology to free up their staff to do their jobs better. “Project values [in the GCC] are quite high, and time constraints are quite severe in certain instances. In our experience, we’ve found that this idea that they can transact at source makes a huge difference to their business,” he says of his company’s clients.

“It’s not only the magnitude of the transactions coming through, it’s the timing.

The sooner they get information through the server, the sooner they have the information that they require. The process to produce costing and management information on a daily basis necessarily necessitates the information flowing through a central server, on a daily basis, to each decentralised location, and the GCC is very well set up to do that.”

Investing in construction software solutions may have met resistance in the past,

APRIL 2015

MEconstructionnEws.com

“Certainly, deCentralised proCesses are putting the responsibility for the Captured information where the responsibility belongs, whiCh is out there on the site”

instant information Having access to information instantly allows construction site managers to make better decisions.

it in focus mobility

but with the advent of the BIM mandate by the Dubai Municipality, and with rumours of the RTA and Abu Dhabi Municipality adopting similar mandates, more and more companies are now exploring their options.

While this eagerness to adopt is welcomed by developers and evangelists, the lack of knowledge poses its own challenges.

Customers often don’t understand what it is that the cloud does, and how it operates.

Both Cheney and Palfreyman point out that while some customers ask them to protect their data behind secure firewalls or in private data centres, others are happy to have their data secured using third parties. No matter how the data is secured, there must remain sufficient checks and balances to ensure that it stays that way.

“The world does its banking via the internet, via the cloud. So if the world is doing its banking via the cloud, and individuals are doing their banking by the cloud, then there are definitely securities in place that would

make it rather difficult to hack,” says Cheney, alleviating fears that construction firms may have about the security of their data.

“A lot of the clients that we have prefer to have all of their processing behind a secure server, which essentially means that they can validate each and every user that comes onto the server. Now, you can take that to the ultimate level by only allowing certain architects to work on your server, which means that you’ve got total control over the information that is being sent to you from a remote location. Over and above that, within the application itself, there are rigorous checks – login checks and matrix checks – on the users in the system. So the application itself has different layers of security.

“There’s one thing that’s certain: the cloud, as a platform to increase the mobility of information and also increase the connectivity of people, that’s here to stay. It will allow people on construction projects to communicate with someone in the design office, using mobile technology. That’s something

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MIDDLE EAST

seCurity ConCerns Clients still remain concerned about the security of their information.

that’s improving and increasing – almost on a weekly basis,” insists Palfreyman.

However, both experts insist that a fundamental issue that needs to be addressed is the uptake and availability of information, for which the ease of access on multiple platforms is crucial. It serves no purpose if project information is only available on one platform and cannot be accessed anywhere else.

“I think where the rubber hits the road is when a contractor, or a developer, is doing a project and there are multiple sources of technology on the project,” says Steven W Berglund, Trimble president and CEO. “As a matter of philosophy and as a matter of strategy, we take an open perspective on this, in terms of integrating at a level sufficient to meet the needs of users. So that’s in terms of sharing model data – and data in general – in an open fashion and in pursuing the right solution for the user. As a matter of practicality, it’s about understanding that our platforms may not be the 100% solution in every regard. There are historical artefacts and legacies that contractors may have, and we need to respect those.”

As a result, Berglund says that Trimble has made a number of acquisitions over the years to ensure that his company can offer its clients mobility applications that cover a wide spectrum of construction segments.

In turn, all the data from these mobility solutions can be coalesced and integrated in a back office environment, he explains.

Palfreyman adds that the feedback he gets from customers highlights growing demand for increased accessibility.

By reducing the barriers to consumption, he believes that both customers and manufacturers will benefit from the increased information flow.

“There has to be no barriers to consumption.

The cloud is part of that. Easy to use applications on iPads, iPhones and tablets are all part of that as well. We’ve made significant investments into those types of platforms over the years, because our customers are telling us that they want to work on Windows platforms, and that they want to work on Android platforms, and on iOS platforms,” he says.

It’s safe to say that mobility will transform the construction industry, both regionally and internationally. With the vast number of construction projects in the pipeline, perhaps it’s only a matter of time before we see more and more contractors taking on board the gospel preached by tech evangelists. The future is here, and there’s no going back.

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SPECIAL REPORT DISPUTES

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Look cLoseLy Consultants and developers need to look carefully at tender bids to ensure that contractors have fulfilled all the requirements asked of them.

APRIL 2015

MEconstructionnEws.com

SPECIAL foCuS DISPUTES

LET ThE rIghT onE In

Disputes are a fact of life in the construction sector, but companies can still do their utmost to avoid them.

This includes choosing contractors who are well-placed to deliver projects, rather than accepting the lowest bid, explains Edward McCluskey, partner at EC Harris

W

hile there is an obvious commercial logic to accepting the lowest bid for a tender, the high cost involved in project failure, disputes or poor delivery should give reason to pause and reflect. Clients can benefit from a more nuanced approach, says Edward McCluskey, partner at EC Harris, an Arcadis company and built asset consultancy firm.

The average value of construction disputes in the Middle East has fallen steadily since their high of $65 million in 2012, but any dispute still extracts a huge toll, both from the business and from the staff involved.

“Disputes are expensive and stressful – not just for the company, but for the individuals involved,” says McCluskey. “Disputes are something that really should be avoided at all costs, but unfortunately, due to the large number of stakeholders that are involved in construction, they tend to happen.”

McCluskey says that there is an obvious commercial logic to accepting the lowest bid. “If you put a contract out to tender, and

a contractor comes back with the lowest price, it’s human nature to think, ‘Well they’ve complied with everything in the tender, why should I not take their bid?’”

But there are plenty of reasons to look carefully at bids. In some cases, the lowest tender may not have fully complied with the tender, or the contractor might not have been pre-qualified beforehand, so the developer or client is taking on extra risk, justifying it by believing they will save money.

“The step to procuring these contracts really is to get to know who you are tendering to, make sure you know the company and that they can deliver, and then thoroughly check what is coming back to make sure they’ve not deviated from the tender,” explains McCluskey.

The many specialist projects underway or planned, and the breadth of skill and experience in the industry, also creates special cases. “It doesn’t always make sense to accept the lowest bidder, because each of the contractors brings something unique to the project. If you’ve got a project where, for example, the flooring

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“one stRIkIng stAtIstIc fRom dIsPutes In the mIddLe eAst wAs thAt 46% of joInt ventuRes ended uP In dIsPute duRIng the yeAR”

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SPECIAL foCuS DISPUTES

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STATS: four of THe moST common cAuSeS of diSpuTeS in 2013 2013 Rank

Cause of Dispute

2012 Rank

1

A failure to properly administer the contract

1

2

employer imposed change

3

3

employer / contractor / subcontractor failing to understand and / or comply with its contractual obligations

-

4

errors and / or omissions in the contract document

-

is of particular importance, and there’s one flooring contractor who is higher than the rest but he does the best flooring, then you’ve got a reason to go with the highest bidder.”

Contracts where the time scale is extremely tight and the job has been awarded to a contractor who has come in with an extremely low price have a higher chance of falling into dispute, says McCluskey. In these cases, the contractor is operating on a knife edge, and it doesn’t take much to tip them over into the red. In the worst-case scenario, the contractor is unable to complete the project due to lack of revenue, and is unable to obtain bank loans, which leaves both the contractor and employer in an unenviable position.

Knowing what is most important for a particular contract allows a developer to practise value management, and whether the emphasis is on speed, cost or quality, it allows them to put into place a value management plan.

“Yes, price may be an important consideration, but if you’ve done a cost plan before, you will have a good estimate of the costs of the tender that are going to come back from the tenderers. If price is the driver, then you accept the lowest bidder and be prepared to manage the risks.

“Passing on all of the risk all of the time to the lowest bidder does not necessarily result in value for money and achieving the right outcome,” says McCluskey.

rEgIon gETTIng on ToP of DISPUTES

The good news as far as construction disputes go is that their prominence is declining. As a major provider of contract dispute resolution services to the construction industry, EC Harris has had its eyes on developments across the global construction disputes landscape. For the past four years, the company has charted the value of construction disputes at a regional and global level. During that time, the average value of construction contracts under dispute in the Middle East has been above the global average, and in 2011 and 2012 it was the highest in the world. But the pleasing news is that, since peaking in 2011, the average value of contracts under dispute has fallen steadily, from $112.5m in 2011 to just $40.9m in 2013.

McCluskey says that the disputes in the region in 2010, 2011 and 2012 stemmed from the market collapse in 2009-10, with crash-related disputes peaking in 2011 due to larger disputes taking longer to reach the dispute stage.

“Claims tend to have a long gestation period before coming into the formal dispute resolution forum, and the more complicated the claim the longer the gestation period tends to be.

These larger disputes have gone through every possible mechanism to try to resolve it among themselves, and eventually it, if unresolved, goes to formal dispute resolution,” says McCluskey.

The globally high value of disputes in the Middle East can be attributed to the high value

of construction projects in the region, especially government spending on major projects such as power plants. This also accounts for the high value of disputes in Asia and North America during the global financial crisis.

“That doesn’t mean that all mega projects fall into dispute,” says McCluskey. “The prime example is the London Olympics, where there were very few disputes, despite being extremely high in value. That could be down to the form of contract, where the risk was equally balanced between the employer and the contractor, and where the time scales involved were realistic.”

Following the 2009-10 downturn, governments across the region took action to limit the impact, especially in Dubai. Special forums were set up to hear disputes, and a lot of disputes were able to be negotiated at the pre-dispute phase. In the Dubai International Financial Centre, a special tribunal was set up to hear disputes in relation to one particular developer. “Governmentlevel measures that were taken in the Middle East were successful,” says McCluskey.

There have also been permanent measures implemented, such as the introduction of the Arbitration Law in Saudi Arabia in 2012, which was designed in part to give more clarity and certainty to overseas investors. “It’s a tremendous movement from the Saudi government to recognise international arbitration, and to introduce a law that is practically common to all arbitration practitioners. There are one or

STATS: HoW THe middle eAST rAnkS in compAriSon To THe reST of THe World in TermS of diSpuTe vAlueS Region

Length of dispute (months)

2010

2011

2012

2013

2010

2011

2012

2013

Middle East

56.3

112.5

65

40.9

8.3

9

14.6

13.9

Asia

64.5

53.1

39.7

41.9

11.4

12.4

14.3

14

US

64.5

10.5

9

34.3

11.4

14.4

11.9

13.7

UK

7.5

10.2

27

27.9

6.8

8.7

12.9

7.9

Continental Europe

33.3

35.1

25

27.5

10

11.7

6

6.5

Global Average

35.1

32.2

31.7

32.1

9.1

10.6

12.8

11.8

MIDDLE EAST

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Dispute values (US$ millions)

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of

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40

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2015

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early 2000s

Riyadh

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Supporting communities in the Middle East for 40 years If we look back to 1975, when we won our first project in the Middle East, the region was in its infancy. Fast forward 40 years and look outside – the contrast is phenomenal. We are exceptionally proud of the contribution we have made planning, designing, delivering, operating, maintaining and managing iconic and large-scale infrastructure projects.

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SPECIAL foCuS DISPUTES

two clauses that are particular to Saudi Arabia, but in the main it’s a very positive step.”

The industry is more adverse to allowing a contract to enter into a dispute, which is unpleasant and stressful for all parties. Disputes draw management resources away from their core roles, and can require hiring of specialists, such as consultants or lawyers, to search through company records and prepare the case, incurring high costs for any business involved.

Many contracts now involve multi-tier dispute resolution, so that parties are brought together at every opportunity to try and resolve the dispute amicably before any claim or difference is referred to formal dispute resolution.

Relationships and dependence can also force resolution. McCluskey says that the number of disputes between main and subcontractors is falling, since there may only be a limited number of subcontractors in a given market, and major contractors will need to use them on future jobs. “It makes more sense to work things out as quickly as possible to preserve the relationship.”

Once a contractor has experienced a dispute, McCluskey believes they will then look closely at the particular element in the contract that

MEconstructionnEws.com

led to the dispute when they bid for future jobs, whether it’s an extremely tight deadline, a clause about ground conditions or a low price.

“They will learn from that, and they will be wary about entering a contract on the same basis that they have done before. Disputes have an impact on absolutely everybody that’s been involved, and once a contractor has been involved in one, he’s going to try his best to avoid any others in the future.”

But while it’s mostly good news on the disputes front, there are also some statistics from the EC Harris report which should give pause for thought. Most startling is the revelation that 46% of joint ventures in the Middle East fail in their first year. JVs are an important feature of the construction industry landscape, and a high failure rate has an impact on construction timescales as well as wasting business efforts.

McCluskey says that JV failures reflect issues common in any kind of relationship failure – partners failing to understand each other’s interests, and not getting to know each other before forming the partnership. “JVs are like a marriage: it has to be worked at, and there’s a level of commitment that is required

from both sides. To do it properly, there needs to be an understanding by both sides of what the other party can bring to the table, and realistic expectations from one another.”

Personal differences between partners can also exacerbate situations, leading to a high rate of JV failures.

“It requires the right mix of individuals.

Not everyone gets on 100% of the time, so matching those that can actually work effectively together is essential.” Ignoring these basic principles is a big cause of JV failures.

The take-away for the region is that, while the landscape for disputes is certainly improving, all parties need to be proactive to avoid problems.

In answering the question “how do we avoid disputes?” EC Harris provides the following advice: Selection of the right form of contract is a crucial first step, with only essential amendments in the particular conditions.

Selection of the best contractor or consultant who is capable for performing in accordance with the contract, not just the lowest price, comes next.

This should be followed by diligently administering the whole contract conditions by both parties, from inception to close-out.

“cLAIms tend to hAve A Long gestAtIon PeRIod befoRe comIng Into the foRmAL dIsPute ResoLutIon foRum, And the moRe comPLIcAted the cLAIm the LongeR the gestAtIon PeRIod tends to be”

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dIsPute ResoLutIon Contractors who have experienced disputes in the past will take care to ensure that they are protected on future projects.

APRIL 2015

COMMENT neil kirkpatrick

MEconstructionnEws.com

neil kirkpatrick

Sustainability – Risk, Reputation and Return: A 10-point plan for maximising the benefits of sustainability Neil Kirkpatrick, Faithful+Gould’s Head of Sustainability for the Middle East, argues that sustainability rating tools should not be used in isolation.

He also outlines a 10-point plan to help organisations maximise the benefits of being more sustainable

I

n my experience of working with government bodies and leading companies worldwide, I have observed that many organisations fail to maximise the benefits associated with sustainability. This is largely due to a lack of clear understanding of how to minimise risks, enhance reputation and maximise returns on investment.

Most countries are increasingly keen to demonstrate how their new buildings, new communities and infrastructure projects are achieving sustainability standards.

In Qatar, this is driven by the Qatar National Vision 2030 and government initiatives led by Ashghal (Public Works Authority), Qatar Rail and the Supreme Committee for Delivery and Legacy.

In most cases, sustainability performance is not expressed directly as reductions in energy use or water use, use of secondary materials or targets to support the national economy. Instead, projects are rated using sustainability tools such as GSAS

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“Qatar ranks among the countries with the highest per capita carbon footprint in the world, with approximately 40.3 tonnes of carbon dioxide being emitted per person. this startling figure is around 10 times higher than the global average!”

MARCH 2015

(Global Sustainability Assessment System, www. gord.qa) or LEED (Leadership in Energy and Environmental Design, www.usgbc.org/leed).

In this respect, rating tools such as GSAS and LEED are surrogates for a wide range of parameters as well as for a structured, managed approach whereby sustainability practitioners typically define a suite of sustainability objectives and work with design and construction teams to assess what level of sustainability can be realistically achieved and delivered in a commercially viable manner.

One of the drawbacks of rating tools is that they don’t compare performance using sustainability strategies with a ‘do nothing’ approach. Without this baseline, users are often unaware of their resource efficiency savings and their reduction in climate change / water scarcity impacts.

At Faithful+Gould we use the 3R’s approach to help stakeholders maximise the benefits of being more sustainable: • Risk – Stakeholders should identify risks and use the outcomes of a risk assessment exercise to guide priority areas for improvement. E.g. energy use, concerns over greenhouse gas emissions and increases in energy costs. A riskbased approach may suggest reducing energy demand and considering the use of renewable energy technologies to supplement or reduce the use of fossil fuels and grid electricity. These solutions offer carbon footprint reduction

COMMENT neil kirkpatrick

Providing practical steps to minimise Risk, enhance Reputation and maximise Return on Investment Step One – Planning / Resourcing: n Secure buy in / involvement / direction from senior management / leadership n Improving sustainability performance needs careful planning n Planning should address all aspects of this 10-point strategy, including clarifying roles and responsibilities, mobilising the team responsible for managing and implementing sustainability improvements, and agreeing the timetable, budget and measures of success Step Two – Barrier to Success: n Understand that there may be constraints that cannot be overcome and these set the framework for what can be achieved and how improvements might be made or informed. n Solutions should be designed and implemented to overcome barriers to success Step Three – Identify Intended Audience: n Understand the needs and interests of internal and external audiences, to guide programmes of work as well as communication strategies n Recognise that the same information can be presented in different ways to meet the needs of different audiences – e.g.: level of detail, format, and raw data vs summary graphs, etc.

Step Four – Budget and Financial Return: n We encourage project teams to make a direct connection between strategies to improve sustainability performances and costs n Costs should include capital costs as well as operating costs n Costs should also consider indirect costs and avoided costs (e.g.: hire of equipment and duration of construction supervision) n Consider alternative scenarios to identify the option that delivers the greatest improvements in sustainability performance for the least or no additional cost n Express results in terms of value for money where possible (e.g.: improvements in performance per unit expenditure) n Agree a period of time to deliver an acceptable return on investment

Step Five – Marketing and Branding: n Early engagement with marketing and communications teams, to harness sustainability performance benefits and use these to support internal and external communications n Consider the importance of branding and alignment to government or corporate goals n Identify benefits and improvements aligned to the main pillars of sustainability – e.g. human / social development, economic development and environmental development n Awards submissions and publishing articles are excellent ways to showcase success and encourage others Step Six – Competition: n We encourage project teams to make a direct connection between strategies to improve sustainability performance and costs n Costs should include capital costs as well as operating costs n Costs should also consider indirect costs and avoided costs (e.g. hire of equipment and duration of construction supervision) n Consider alternative scenarios to identify the option that delivers the greatest improvements in sustainability performance for the least or no additional cost n Express results in terms of value for money where possible (e.g. improvements in performance per unit expenditure) n Agree a period of time to deliver an acceptable return on investment Step Seven – Starting Point: n Early engagement with marketing and communications teams, to harness sustainability performance benefits and use these to support internal and external communications n Consider the importance of branding and alignment to government or corporate goals n Identify benefits and improvements aligned to the main pillars of sustainability – e.g. human / social development, economic development and environmental development n Awards submissions and publishing articles are excellent ways to showcase success and encourage others

Step Eight – End point / Intended Outcomes: n Agree and set targets so that success can be measured / assessed n Recognise that an end point is not limited to one metric only. Consider all the benefits of being more sustainable n Understand that in some situations, strategies for improvement may result in improvements for some considerations (e.g. reduced energy consumption) but actually make the situation worse for other considerations (e.g. increased solid waste generated) n Weighting factors may be used to aggregate results into single scores (This approach may be criticised for lack of transparency or technical rigour) Step Nine – Sustainability Tool Kit (Including Rating Tools) n Having understood how sustainability performance will be improved, the deliver team should ensure it has all the relevant tools and calculators to help inform decision-making n If using rating tools such as GSAS and LEED, further steps are required to register projects with certification bodies and to agree the scope of work and fees for certification / inspections n We strongly advise that rating tools should not be used in isolation from a structured approach to manage and inform decision-making Step Ten – Continuous Improvement n Improving sustainability performance isn’t a one-off exercise n Continuous improvement and setting targets for improvement can be linked to staff development (e.g. to clarify roles and responsibilities for delivery of targets for improvement) as well as corporate / government strategies (e.g. to guide delivery of vision statements) n Data and metrics should be captured in different ways to ensure that improvements take account of growth n Every organisation is strongly advised to capture lessons learned and share successes so as to inform future improvements in performance

Neil Kirkpatrick is Faithful+Gould’s Head of Sustainability for the Middle East.

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MIDDLE EAST

Our 10-POInt Strategy

benefits, as well as reduced costs when considered over a defined period of time.

• Reputation – Being seen to be responsible and meeting stakeholder / customer needs will often enhance reputation, attracting new customers. An enhanced reputation can also encourage investment and help increase share prices. This approach is also a great incentive for staff recruitment and retention. A poor reputation often delivers the opposite effects.

• Return – All commercial organisations depend on robust financial planning supported by a healthy balance sheet and good cash flow to finance investment (e.g. in new technologies and staff). We encourage all stakeholders to scrutinise sustainability strategies and to assess capital and operating costs at the outset. Many organisations believe that it is only possible to be more sustainable by spending more money – even if that might be compensated by a return on investment over time. In most cases it is possible to be more sustainable without spending more money.

Commercially viable alternative strategies and technologies can be explored, to reach the most sustainable outcomes possible.

Our 10-point strategy provides practical steps to minimise risk, enhance reputation and maximise return on investment.

Qatar ranks among the countries with the highest per capita carbon footprint in the world, with approximately 40.3 tonnes of carbon dioxide being emitted per person. This startling figure is around 10 times higher than the global average! Combine this with the fact that they also have the lowest rates of recycling in the world and it is clear to see why Qatar has made becoming more sustainable a central plank in its vision and strategy for the future.

Faithful+Gould supports this vision and have been providing our sustainability services not only in Qatar but around the Middle East. We lead sustainability performance improvement on a wide variety of projects, and represent the interests of many different stakeholders.

In addition to the use of rating tools, we are experts in the use of a suite of tools that focus on resource efficiency, carbon footprint reduction and modelling performance scenarios. We also lead the development and implementation of management systems covering all elements from sustainable procurement to designing and rolling out bespoke training programmes. n

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SuStainability Waste Free environment

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RecoRD clean-up foR al MaMzaR Beach waste fRee caMpaign Dubai eDition of clean-up Drive inaugurateD by uae Minister of environMent

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round 17 schools and 800 volunteers participated in the Dubai leg of Waste Free Environment (WFE), the global environmental campaign, held at Al Mamzar. Hosted by the Gulf Petrochemicals and Chemicals Association (GPCA) and sponsored

by Shell Chemicals and Lyondellbasell, the community-based initiative ran across 18 locations in 13 cities in the GCC, India and Europe, gathering volunteers to clean up beaches.

“I would like to thank GPCA for its constant efforts in the waste management sector, embodied with the ‘Waste Free Environment’ campaign which reflects GPCA’s commitment towards social and environmental responsibility,” said His Excellency Dr Rashid Ahmed Bin Fahad, UAE Minister of Environment.

“The Ministry places great importance and focus on the waste management issue as one of the most pressing priorities in the UAE, given its economic, social, environmental and medical effects.

The Ministry addresses this issue through two approaches, the first in limiting the generation of waste from the source, by organising awareness programmes that target families and individuals, or by regulations and developing a national regulatory framework for waste management.

“The second revolves around the reuse and

APRIL 2015

recycling of waste as a national commitment and one of the major objectives of the national agenda of the UAE Vision 2021. We all hope that we can strengthen the cooperation between the public and private sector in that domain, and encourage private companies to play a more vital role in waste management in a way that exceeds corporate social responsibility initiatives.”

This year’s campaign marks the first instance that the WFE has gone beyond the Arabian Gulf, aiming to educate the public about responsible waste disposal and tackling challenges associated with plastic litter.

The Dubai edition of WFE was responsible for waste collection from the shoreline of Al Mamzar Beach, with plastic waste earmarked for recycling courtesy of Tadweer, a leading provider of waste management and recycling services. Volunteers included 660 children from schools like Raffles International School, JSS Private School and Home Grown Eco Nursery. Canadian University of Dubai (CUD) professor Dr Rami El Khatib, a recognised expert in the field, presented an awarenessraising session, which included a talk on the environment and the importance of recycling.

In addition, the campaign hosted waste-related entertainment activities and participants were awarded prizes courtesy of Bounce Middle East, Groupon Middle East and Hint Hunt Dubai.

Along with waste collection, education plays a crucial role in the campaign, which highlights the fact that plastic litter in marine and desert environments is largely due to irresponsible disposal combined with poor waste management, a lack of regulatory framework and insufficient recycling infrastructure.

“At its core, WFE is a campaign that revolves around education, as litter is fast becoming a pressing environmental issue that can only be solved if people are engaged in the 4 Rs – Reduce, Reuse, Recycle and Recover,” said Dr Abdulwahab Al Sadoun, Secretary General, GPCA. “We are grateful for the participation of so many students, and are hopeful that these young minds make habits of the lessons learned today.”

The focal point of Waste Free Environment was complacent attitudes towards waste disposal, which are tarnishing the image of plastics products, a major part of the region’s economy and both economically valuable and sustainable.

As a signatory to the global “Declarations for Solutions on Marine Litter”, the GPCA actively collaborates with governments, non-governmental organisations and the general public on sustainable waste management solutions.

The WFE is a key component to GPCA’s contribution to this declaration.

SHAPING CITYSCAPES ACROSS THE WORLD

Hyder is an award winning multi-national design and engineering consultancy that has delivered landmark projects in over 100 countries for more than 150 years.

www.hyderconsulting.com

SPECIAL REPORT E-GOV

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The convergence of four powerful forces – social, mobile, cloud and information – is driving innovation in the government sector. Big Project ME reviews ten technology trends that government IT organisations should factor into their strategic planning

APRIL 2015

SPECIAL REPORT E-GOV

A

ccording to Andrea Di Maio, managing vice president at Gartner, smart government integrates information, communication and operational technologies to planning, management and operations across multiple domains, process areas and jurisdictions to generate sustainable public value.

Gartner has identified top technology trends that government IT organisations should factor into their strategic planning processes.

personal mobile workplace

Regardless of how well government IT organisations try to categorise the types of devices, applications and interaction styles by user role, they will inevitably miss the fact that on any device, personal use will creep into professional use. Government IT organisations may have an illusion of control by either providing and managing those devices or issuing well-articulated policies to allow and manage employeeowned devices. However, the reality is that employees, depending on demographics, personal preferences and pressure to improve performance, can decide how much they want to use corporate information and applications versus personal information and applications. mobile citizen engagement

Several inquiries with Gartner government clients reveal an interest in providing citizenfacing services using mobile devices, as well as leveraging social software functionalities. This interest is driven by a combination of pressure coming from the political leadership and from opportunities that new technologies present.

The suitability of government services to be delivered over a mobile channel depends on a combination of demographics, frequency and recurrence of use, immediacy and urgency of use, potential level of automation, relevance of location information for service delivery, and how compelling the use of the service is. big data and actionable analytics

APRIL 2015

MIDDLE EAST

tech trends Government IT operations should look at how technology factors into their strategic planning processes.

Big data continues to present government with information management and processing issues that exceed the capability of traditional IT to support the use of information assets.

Existing practices that selectively evaluate which data should be integrated are being challenged by the realisation that all data can be integrated with technologies that are specifically developed to do so.

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SPECIAL REPORT E-GOV

The adoption of big data concepts and initiatives in the public sector varies widely among jurisdictions and, to date, is limited to specific use cases such as fraud, waste and abuse detection; enhanced security capabilities; public health surveillance; healthcare management; or combining data from IT and operational technology (OT) applications to enhance security monitoring or increase situational awareness. Governments are searching for ways to use big data to gain business process efficiencies and reduce costs, but are having limited success.

MEconstructionnEws.cOm

both public and private cloud services, but the focus is shifting from developing internal cloud services to allowing agencies to purchase commercially provided but governmentally restricted services. For example, government clouds from vendors such as Google and Microsoft have shifted email service in a number of agencies from public to government clouds.

The main objectives pushing cloud adoption have been cost reduction, speed of procurement and deployment, responsiveness to regulations and the need to cut costs. The public cloud is also gaining momentum as governments seek savings via consolidated procurement.

cost-effective open data

Many tend to equate open data with public data; however, data can be defined as open when it is machine-readable and is accessible through an API. This can apply to potentially any data that needs to be processed, whether it be public or restricted for use by a particular government agency. This leads to new ways of mashing up data coming from different sources as well as the ability to build new services and processes based on open data. Governments become both providers of open data to each other and to the public at large (the latter just for public data) and consumers of open data coming from other parts of government as well as from businesses, NGOs and citizen communities.

internet of tHings

The internet is expanding beyond PCs and mobile devices into enterprise assets such as field equipment, and consumer items such as cars and televisions.

Governments, as well as most enterprises and technology vendors, have yet to explore the possibilities of an expanded internet and are not operationally or organisationally ready.

Smart city plans in several jurisdictions aim to explore the ability to process huge masses of data coming from devices such as video cameras, parking sensors and air quality monitors, to help local governments achieve goals in terms of increased

citizen-managed data

Citizen data vaults are services that provide data subjects with the ability to access their data outside the context of a particular government transaction, allowing them much finer-grained control over when and how data can be accessed, and by whom, within the relevant legal framework that they are subject to.

Citizen data vaults offer significant potential benefits in meeting internet users’ evolving expectations, providing more transparent control of individual privacy rights on electronic data, easing the task of integrating different government services, and creating conditions for the creation of value-added services from commercial, non-profit and peer-to-peer organisations (such as social networks).

On the other hand, there are significant challenges to overcome, such as interoperability, latency issues, data availability and reliability, credibility and security issues, and the size and complexity of healthcare and other target areas.

Hybrid it and cloud

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Governments worldwide continue to pursue

APRIL 2015

“Governments become providers of open data to each other and to the public at larGe (the latter just for public data). they also become consumers of open data cominG from other parts of Government as well as from businesses, nGos and communities”

public safety, improved environment and an overall better quality of life. cross-domain interoperability

Smart government initiatives depend on interoperable information, data obtained from external as well as internal sources, and processing and delivery networks that effectively integrate planning, performance analysis and business operations. To obtain economies of scale, governments have long sought to standardise and consolidate assets and processes. To date, the results have been mixed.

Whole-of-government enterprise architecture programs have often failed to maintain momentum over budget cycles or changes in administration. It is important to focus on scalable interoperability, a “just enough” approach to standards and architecture that delivers immediate business value as measured by narrowly defined, high-priority use cases. bpm for case management

There isn’t one market for case management because all cases are not the same. Gartner distinguishes two types of cases. In decisioncentric cases, the purpose of the work effort is to make a decision about rights, entitlements, payments, enrolment, priorities, risk or some other high-impact outcome.

In investigative cases, the outcome is uncertain; the purpose of the work effort is to identify interaction patterns among data.

When the case is created, it often has very little data and structure. As the investigation progresses, data is added and patterns begin to appear. Fraud detection and criminal investigations are leading examples of this type. Both decision-centric and investigative cases have a heavy dependence on semistructured and unstructured information. gamification for engagement

Humans are hard-wired to enjoy games and have a natural tendency to engage when interactions are framed in a game construct.

Gamification for government services, applications and processes can increase user interactivity and change behaviour, resulting in greater engagement.

However, governments planning to leverage gamification must clearly understand the target audience they intend to engage, what behaviour they want to change, what motivates the audience and maintains their engagement, and how success will be measured.

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COMMENT Driver Consult llC

bigprojectMe.Com

lorraine gillesPie

The importance of an Integrated Project Master Baseline Programme In the final part of this series, Lorraine Gillespie outlines the commercial and contractual implications of not having an Integrated Master Baseline Programme

T

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“Whilst having a Master Baseline PrograMMe can offer soMe reassurance to an eMPloyer, it Will Be of little Benefit if it is not strictly iMPleMented or adhered to as delays to one Package Will / can affect other Packages”

APRIL 2015

his article is the third article in a series of three critically appraising disparate aspects of an Integrated Master Baseline Programme to identify its importance to the successful delivery of an infrastructure mega-project. For clarity, the three articles can be summarised as follows: • Article 1 – An Introduction to the Topic: In the first article, the topic was introduced by explaining the importance of an Integrated Master Baseline Programme to the timely completion of an infrastructure mega-project.

• Article 2 – An Example: In the second article, an actual example from the author's own experience was outlined, which demonstrated the issues caused as a direct consequence of a lack of integration on an infrastructure mega-project.

• Article 3 – Commercial and Contractual Implications: In this third and final article in the series of three, the commercial and contractual implications of not having an Integrated Master Baseline Programme will be examined with examples from an infrastructure mega-project.

The construction industry has a poor record in achieving acceptable standards in terms of time, cost and quality and it has lagged behind other industries in terms of satisfaction with projects and processes delivered; furthermore, the level of profitability achieved has traditionally been relatively low compared to other industries.

Recognising these facts, several reports have been commissioned in the United Kingdom into the issues, including the 2001 report by the Nations Audit Office entitled ‘Modernising Construction’ which found that 70% of projects undertaken by government departments were delivered late. Unfortunately, the situation in the Middle East is no different, infrastructure

mega-projects are typically delivered late, over budget and not to an acceptable quality whilst cash-flow and profitability among contractors and other key industry stakeholders are not to a standard required to maintain a healthy and progressive construction industry.

It can be argued that the delivery of infrastructural mega-projects has created an interesting juxtaposition between what can and cannot be achieved with regard to time, cost and quality. Specifically, whilst all the stakeholders to a project are adamant at the time contracts are signed that the works will be complete on time and within budget, the harsh realities soon become apparent. Projects are completed late, they are completed over budget and the final quality is not of the standard first envisaged when the works were proposed.

To further develop the point, it can be argued that most of the stakeholders in the construction industry have failed to fully appreciate or understand that time has a commercial value or ‘TIME = MONEY’. Specifically, any delay or misalignment to one of the disparate packages / individual contracts on an infrastructural mega-project can / will cause delays to the other packages / contracts and result in a delay to the completion of the works.

To use three examples from a new multibillion dollar airport project (a mega-project with 12 individual works packages which is currently being constructed in a country in the Middle East), the commercial value of time can be demonstrated as follows: • Example 1 – Package 3 ‘Main Passenger Terminal Building’: By virtue of protracted negotiations with two of the preferred bidders for Package 3 ‘Main Passenger Terminal Building’, the employer and its agents delayed

COMMENT Driver Consult llC

early start It is crucial to have an Integrated Master Baseline Programme implemented early on in a project's lifecycle.

actual cost of the delay was a multiple of that figure due to programme delays and construction revisions associated with not having the Package 8 contractor on board to assist in the preparation of the design.

• Example 3 – Engineer's Design: The engineer, by failing to design the AWAN IT Network (Area Wide Airport Network) in a timely manner, delayed the works of the Package 1 contractor (‘Site Infrastructure Works’) as the AWAN network ducting works could not commence until the design was completed. As a direct consequence of the delay, the Package 2 contractor (‘Air Traffic Control Tower and Ancillary Buildings’), the Package 3 contractor (‘Main Passenger Terminal Building’) and Package 6 (‘IT and Airport Systems Integration’) suffered delays to their works. An initial delay of approximately nine months on one package became a 12-month project delay with four packages affected once the true effects were felt by the follow-on package contractors.

As outlined in these three examples, each and every delay event to one Package resulted in follow-on delays to other Packages and delays to the project completion date. The true effect of the delays is cost, as time has a commercial value. Cost will be incurred by some of the stakeholders whilst other stakeholders will try and recover the incurred cost.

In conclusion and to summarise the findings of the three articles, it is of the utmost importance to put in place at the earliest possible stage of the project cycle an Integrated Master Baseline Programme. Whilst having a Master Baseline Programme can offer some reassurance to an employer, it will be of little benefit if it is not strictly implemented or adhered to as delays to one package will / can affect other packages. As we have seen from our series of three articles, time has a commercial value. n Lorraine is a senior consultant for Driver Consult LLC. For more information, please go to www.driver-group.com

APRIL 2015

MIDDLE EAST

the award of the Package 3 contract. Once appointed, the Package 3 works were in substantial delay which meant the final project completion date could not be achieved. Furthermore, delays were caused to other package contractors like the Package 6 (‘IT and Airport Systems Integration’) contractor as their works programme was reliant on timely access to work fronts.

• Example 2 – Package 8 ‘Baggage Handling System’: Again, similar to example 1, the employer and its agents delayed the award of Package 8 ‘Baggage Handling System’ due to protracted negotiations with two of the preferred bidders. As a direct consequence, delays were caused to the Package 3 (‘Main Passenger Terminal Building’) design and build contractor as it had to make revisions to its completed design / alter completed works to incorporate the Package 8 design requirements. Whilst the employer saved money by extending the negotiation period by six-plus months, the

57

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CONSTRUCTIVE CRITICISM

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Wael allan

Licence to skill Wael Allan explains how international consultancies positively impact the cities where they operate

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Hyder Consulting’s first regional project was in yemen in 1904, where John taylor and sons – our predecessor company – advised on water and sewerage schemes. longevity in any region raises a number of macro-economic and social questions about the legacy and influence of design and engineering consultancies. there are a number of important contributions that such companies collectively provide to the economy and stability of a nation. the first, and most obvious, is the creation of quality infrastructure projects and the resulting effect on the users of these built assets. this impact of effective infrastructure on a country’s economy, and by implication its political and social stability, is vast, from roads and transport systems leading to increasing connectivity and mobility, to the role of functioning and efficient schools, hospitals and other crucial built assets. for design and engineering consultancies, this positive impact on society results in a continued cycle of work; the improvements

APRIL 2015

in infrastructure result in an increasing gdP. What normally follows is a natural increase in projects thanks to the growing economy. it is a win-win scenario for the society and the companies who build and design them. the second major impact from the work we do is related to the skills and knowledge transfer from international companies. the jobs that consultancies tend to provide are mainly for skilled personnel who, in order to maintain global standards, are constantly developing themselves. this contributes to a country’s knowledge-based economy and creates wealth for a viable middle class who are an important key driver of growth and stability. on top of a skilled workforce, the dynamic of a multinational workforce – which shares best practices and continuously learns and improves techniques and methods – provides added benefits both to design and engineering consultancies and to the local economy. from a macro level there is a clear connection between skilled people and happiness, which, like the growth in the

economy, has benefits for both society and the firms themselves. the provision of highskill employment means people are fulfilled financially, socially and intellectually. Happy workers make companies more productive and the positive cycle continues.

Another positive influence of international consultancies relates to the theme of tolerance. Certainly, international companies working in emerging markets bring with them global methods and different ways of working. likewise, to succeed, international consultancies require cross-border activities, relationships and systems that require total acceptance and tolerance of all cultures.

While globalisation is a cliché, it is apt to summarise this discussion. dubai and Abu dhabi are microcosms of the phenomenon. these cities have embraced the global workforce and the international design and engineering consultancies which bring expertise, staff and investment. the resulting society is a snapshot of what a globalised world can look like, with a plethora of cultures working side by side in relative prosperity and harmony.

Wael Allan is Hyder Consulting COO and Middle East chairman.

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